India court presents police three weeks to enact Paytm possession probe

Ashok Kumar Saxena poses for a photo in Vancouver, Washington, U.S., Aug. 11, 2021. REUTERS/Alisha Jucevic/

NEW DELHI, Aug 23 (Reuters) - An Indian court on Monday has given police three weeks to enact an investigation into claims from a damaged-down Paytm director who said he co-founded the digital price platform nonetheless did not get shares owed.

Ashok Kumar Saxena, 71, in true documents said he invested $27,500 twenty years in the past in Paytm mother or father One97 Communications nonetheless became never dispensed any stock, Reuters reported this month.

Paytm has said the claim portions to harassment and cited it under "felony court cases" in the prospectus for its proposed $2.2 billion preliminary public offering (IPO). Saxena, a director from 2000 to 2004, has written to the market regulator urging it to pause Paytm from proceeding with the IPO. study more

Corporate governance experts said the tussle might perchance spark regulatory inquiries and complicate the approval of an IPO that will perchance trace Paytm, backed by Chinese e-commerce leader Alibaba Community Conserving Ltd (9988.HK), at up to $25 billion.

On Monday, a Delhi district court direct requested the closing portray of the police's investigation within three weeks.

"I'm directing them to enact the inquiry as quickly as that it is seemingly you'll perchance perchance presumably imagine," said Metropolitan Magistrate Animesh Kumar.

The police has submitted a suite portray to the court nonetheless is yet to enact the investigation, senior lawyer Anupam Lal Das, representing Saxena, urged Reuters after the hearing.

A Delhi police legit declined to observation. Paytm did not reply to a attach a matter to for observation.

The heart of the dispute is a doc seen by Reuters, dated 2001 and signed by Saxena and new Paytm Chief Executive Vijay Shekhar Sharma, declaring Saxena became to delight in 55% of One97 Communications with Sharma owning the the relaxation.

Paytm, in a response to a police study about and which became seen by Reuters, denied Saxena became a co-founder and said the doc in demand became "merely a letter of intent" which "did not materialise into any definitive agreement. study more

Sharma did not reply to a attach a matter to for observation.

The case will next be heard on Sept. 13.

Reporting by Abhirup Roy and Aditya Kalra; Making improvements to by Christopher Cushing

Our Standards: The Thomson Reuters Believe Principles.

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